American Outdoors Brands cited as a “stock to hold onto” for the next 50 years
By Christen Smith
A market analyst and financial writer said Friday the longevity of Smith & Wesson makes American Outdoor Brands stock worth holding onto for the next half century.
“The stock has jumped 25 percent over the last three months as Wall Street begins to realize it was wrong about a so-called Trump slump,” said Rich Duprey, a writer for the investment website The Motley Fool, in an article published Friday. “But with shares still deeply discounted, buying now will reward investors many times over 50 years from now.”
Duprey predicts although its share of gun revenue for American Outdoor Brands will dwindle as the company diversifies to include shooting sports and other aspects of “the rugged outdoors market,” the gun industry’s growth will not likewise fade.
“Political issues have a bearing on the timing of a purchase, but not on the continuing demand for guns,” he said. “That’s key because firearms sales remain on an upswing, and American Outdoor Brands is a cheap stock. It continues to trade at just 10 times earnings, 14 times next year’s estimates, at just a fraction of its expected earnings growth rate, and at a bargain-basement eight times free cash flow.”
Duprey cited a recent report from the National